Laws: tax credits report highlights shambolic and unfair system

David Laws, MP for Yeovil Constituency, has commented on the highly critical report issued today by the Parliamentary Ombudsman on Tax Credits.

“This Report shows what I have long argued – that the administration of the tax credits system is shambolic and grossly unfair.

“Millions of people are being asked to pay back thousands of pounds each every year, in spite of the fact that quite often the overpayments are actually caused by mistakes by the Inland Revenue, which people could not have been aware of.

“I am furious that even though these problems have been known about for years, Gordon Brown has sat on his backside doing nothing to fix the system.

“Meanwhile many people on low incomes have been driven further into poverty by large overpayments – sometimes I have had people in my Advice Centres in tears because of the debts which face them.

“The Ombudsman has shown that the system is often unfair and unreasonable, and is so complex that even many MPs don’t seem to understand it.

“The Government must now change the rules to stop clawing money back from those people who could not reasonably have known about their overpayments. The Government should also move to a system of fixed awards which will eliminate the instability of the existing system.

“I will be pressing for an urgent debate in Parliament on this issue.

“Meanwhile any constituent of mine who is being unfairly asked to repay a tax credit sum should get in contact with me.” ENDS

Category: Constituency News